10 Things You Should Know Before Buying a Home ...

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1.  Before you start looking for a home, get pre-qualified for a loan.  Banks, credit unions, and mortgage bankers make home loans; mortgage brokers process loans through a variety of lenders. The lenders will take an application, process the loan documents, and see the loan through to the funding stage.

2.  If you have marginal or bad credit, consult your lender.  You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit.

3.  You will need a down-payment.  Down-payment requirements vary depending on the type of loan. Many down-payment assistance programs exist. These programs may loan or grant you the funds necessary for the down-payment. Consult with a lender about programs available in your area.

4.  You will need funds for closing costs.  Closing costs are charges for services related to the closing of your real estate transaction. They include, but are not limited to: Escrow fees, title policy issuance fees, mortgage insurance fees, fire, flood, and homeowners insurance, county recorder fees, & loan origination fees. Consult your lender for an actual estimate of these costs.

5.  Some loans have "points" and some do not.  A point is a loan origination fee equivalent to 1% of the loan amount. Together with the interest rate, they constitute the yield on your loan for the lender.

6.  Signature Mortgage rates can be fixed or adjustable.  Which one is right for you depends on whether mortgage rates are at a high or a low point when you purchase, and on how long you plan to live in the home.

7.  There are two main types of loan categories.  Conventional Loans. Conventional mortgage loans are available with fixed or adjustable interest rates. Government Loans. These include FHA fixed and adjustable rate mortgage loans, and VA fixed rate mortgage loans.

8.  If you are a low-to-moderate-income homebuyer, there are special programs designed to help you.  These loans are available through private lenders, as well as local and state housing agencies.

9.  You may have to pay mortgage insurance.  Mortgage insurance protects the lender from potential loss if you should default on your mortgage loan payment. Mortgage insurance is always required on FHA mortgage loans.

10.  Many organizations offer home loan counseling to prospective homebuyers.  They will cover home selection, realtor services, lenders, loan programs, homeownership responsibilities, saving for a down-payment, and other important pieces of information.

If you have any questions at all, give me a call.

Ken
951-760-3833

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Down Payment Got You Down?

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For many Americans, "coming up" with a down-payment for their first home purchase can be a major roadblock -- and quite often the reason for renting, rather than owning, a home.

A "down-payment" is the difference between the home's purchase price and its mortgage amount. This percentage of the sale price must be paid up-front and can vary by lender, location, and loan program. A higher down-payment generally translates into lower loan interest rate requirements.

Typically, a down-payment comes from personal cash savings, but it can also be a gift that is not to be repaid, or a borrowed amount secured by assets.

While conventional loan down-payments may be close to 20% of the sale price, government loans, such as FHA and VA, typically have lower down-payment requirements. This allows potential homebuyers who normally cannot meet down-payment requirements an opportunity to qualify for a mortgage.

Are you ready to get pre-approved for a mortgage?  Give me a call.  After a few questions, I'll be able to tell you what your best options are.

Ken
www.KenHallProperties.com
PH 951-760-3833

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Are You Ready With A Plan B?

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Have you heard the saying, "hope for the best but plan for the worst"? Do you have a plan in place if your loan modification doesn't work? Who is on your team? How will you execute?

If your loan modification attempt unravels you'll need to move quickly in order to avoid foreclosure and possibly collect HAFA $$.

Give me a call and I'll help you develop a contingency plan that can keep the bank from foreclosing.

On your team,
Ken Hall
Allison James Estates & Homes
43015 Blackdeer Loop
Suite 104
Temecula, CA 92590
951-760-3833
KenAHall@gmail.com
www.KenHallProperties.com

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I'm Putting My Money Where My Mouth Is ...

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Your home can't sell for more that its appraised value unless a buyer is willing to pay you additional money outside of escrow. This is because no lender in their right mind would lend money for a house that a professional appraiser has determined isn't worth the sales price.

In other words, the highest price you can obtain for your home in today's market is whatever the appraiser says it's worth - max.

To be clear, while appraisers may arrive at different values they will certainly be close and the lender always has the option to order a "second opinion" from another appraiser. Call me today if you'd like to discuss getting top dollar for your home.


Ken
951-760-3833
KenAHall@gmail.com
www.KenHallProperties.com

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Second-Richest Man Says Mortgages Now a "No Brainer"

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Warren Buffett is the second-richest man in America today, behind Bill Gates. (He was the richest man in the world in 2008.)

He made his fortune through the financial markets. Buffett, to me, is the one of the greatest financial mind of our time – if not ever.

Right now, Mr. Buffett says to get a fixed mortgage… Specifically, he calls it a "no brainer." Mortgage rates have been falling again lately, and they're not far from all-time record lows.

"You would think that people would be lining up now to get mortgages to buy a home," he said at a Fortune magazine conference this week.

Buffett has been surprised about the speed of housing's recovery. He said it "has been slower than I anticipated." But he is not worried.

Buffett expects housing will recover, as it always does after recessions. He joked that inevitably "Hormones kick in, and in-laws get tiresome."

Buffett likes 30-year fixed mortgages best, calling them "incredibly attractive."

Here's why…

He says that if interest rates go up after you get your mortgage, you win – because you're locked in for 30 years at a great rate. And if interest rates go down, you win as well – because you can easily refinance at a lower rate.

If you have a long-term view that the dollar is going to weaken eventually, and that interest rates will rise eventually, then, according to Buffett, you really want to get that 30-year fixed-rate mortgage…

"It's a good way to go short the dollar, [and to] short interest rates. It's a no brainer," he says.

The greatest financial mind of our time says a 30-year mortgage today is a no brainer…

Are you going to listen to him?

Mortgage rates are near-record lows relative to history. And house prices are still affordable.

I suggest you take the advice of America's second-richest man… and (if it makes sense for you at all) consider getting yourself a fixed mortgage of some sort, right now!

Ken
951-760-3833

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You'll Believe This But No One Else Will ...

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If you've been working on your bank in an effort to get your loan modified you'll believe this story I'm about to share with you. If you have no experience dealing with banks "negotiators" whose sole purpose is to drive you crazy and make you go away then you might not believe me.

I recently had a client who was told by his lender that he would not qualify for a loan modification unless he became 60 days late.  Up to that point he'd never missed a payment and in all likelihood could have continued doing so even though it was a mighty struggle and the property was worth less than he owed. He nervously followed their advice in order to qualify for the loan modification.

After skipping his second mortgage payment he called his lender and was shocked to have the new negotiator assigned to his file promptly inform him that he would still not qualify for a loan modification because of his debt-to-income ratios.

Luckily for my client, he had consulted with me before starting the whole process and took my advice about taking copious, detailed notes about everything he was told on every phone conversation he had with his 'Negotiator.' After detailing all the conversations he'd had with the original negotiator for 30 minutes she finally agreed that he was in fact qualified and then actually whispered into the phone, "they make me say all that stuff."

Can you believe that?!  If you haven't figured it out yet, believe me when I say, the Wall Street power brokers who control the lending industry are corrupt.  Absolute scumbags.

Unfortunately, the new terms they offered (after 2 years of trying!) did nothing to fix his long term problem of being more than $75k upside down on the property.  

If you or anybody you know is in a similar situation, please don't keep me a secret! I can help.

Regards,
Ken Hall
Allison James Estates & Homes
43015 Blackdeer Loop
Suite 104
Temecula, CA 92590
951-760-3833
KenAHall@gmail.com
www.KenHallProperties.com

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Being Able to Fully Trust Your Agent is the Most Important Thing

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While many home sellers will list with an agent they know personally from their place of worship, health club or other association, things don't always work out so well. It's important to work with someone you trust and feel good about, but if it's a relationship you value or someone you'll have to continue to see even if things don't go so smoothly than it might make sense to interview others.

I'd love to interview for the position of "selling agent" should you decide to put your home on the market.

Ken
951-760-3833

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Bankrupt Lender ... No More Mortgage Payments? ...

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One of the questions I'm asked often is, "What happens if the lender I got my mortgage from goes out of business?"

That is a great question! I think a lot of people are concerned that they'll somehow lose their home, or that the bank will ask for the loan to be paid back immediately. Well, neither of those things can happen.

Your debt is a valuable asset of the bankrupt lender and it will be sold and transferred to another lender. So all it means is that the firm receiving your payment will change.

You see the firm that receives your payment is called the loan servicer, and they may or may not own the actual mortgage itself. Most loans today are serviced by specialized servicing companies who don't own the loans but collect a fee from the owner to process all the payments and other paperwork, like collecting escrows.

Transfers of servicing occur quite a bit, occasionally because the servicing firm goes bankrupt, but more commonly because the servicing contracts get sold.

When a lender buys your mortgage they assume all the terms and conditions of your original loan. By law they cannot change anything other than where you mail the payment.

If you ever have questions and you want honest answers, don't hesitate to give me a call.

Thanks for not keeping me a secret!  I look forward to talking with you soon!


Sincerely,

Ken
951-760-3833

CA DRE License #01418440 
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